CBN releases new guidelines for forex sale by BDCs two years after ban

The Central Bank of Nigeria (CBN) on Friday released fresh guidelines for the sale of foreign exchange by Bureau De Change (BDC) operators in the country.

The development came years after the apex bank banned the sale of forex to BDC operators in a bid to safeguard the value of the naira.

The suspended governor of CBN, Godwin Emefiele, who announced the ban at a media briefing on July 27, 2021, in Abuja, lamented that the BDC operators had abandoned the original objective of their establishment which was to serve retail end users who need $5,000 or less.

The apex bank released the new guidelines in a statement posted on its website.

It urged the operators to stick to the new guidelines which are aimed at stabilizing the foreign exchange market.

READ ALSO: CBN unveils Price Verification Portal for forex dealings

The statement read: “The spread on buying and selling by BDC Operators shall be within an allowable limit of -2.5% to +2.5% of the Nigerian Foreign Exchange market window weighted average rate of the previous day.

“Mandatory rendition by BDC Operators of the statutory periodic reports (daily, weekly, monthly, quarterly, and yearly) on the Financial Institution Forex Rendition System (FIFX) which has been upgraded to meet individual Operator’s requirements.

“Operators are to note that with effect from the date of this circular, non-rendition of returns would attract sanctions which may include withdrawal of operating license. Where operators do not have any transactions within the period, they are- expected to render nil returns. Please be guided accordingly and ensure compliance.”

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